8GBs would really be overkill!

I have 3 Gigs in mine (I may go for a 4th tops eventually - not that I have any need for it yet. Maybe if SPORE eats up too much memory 6 months from now.), and it actually is a difference over 1 gig, plus Windows loads up a bit quicker, too.
Here's the way I look at it -
Anything less than 128 Megs - A museum piece.
128 Megs - Win95 or Win3.1, plus an old word processor. (I know of someone who does this. They bought my uncle's old PC for that purpose).
256 Megs - Win98 or less, plus a decent word processor.
512 Megs - Windows 98 (a bit of an overkill for Win98, though), a few older games, plus MS Office.
1 Gig - Windows XP, plus your standard programs.
2 Gigs - A good developer box, and most gaming, and for minimum server requirements.
3-4 Gigs - Good for the last 5% of games that require a lot of memory, or if you're using tons of graphical drawing programs. Civ4 might qualify as one of those 5% of games that use up tons of memory (excessive graphical rendering! And yes, it did speed up Civ4.)
5-8 Gigs - Only if you're running a server with a healthy dose of data. (We have a couple servers like this at work.)
9+ Gigs - Only for supercomputers.
I have an Intel P4 3.2Ghz machine that's 4 or 5 years old now, and it still runs great. It ran the Crysis demo beautifully! (with occasional lagging in high-rendering scenes, but nothing major.)
Now, there are old games that used memory really well, like SimLife and SimEarth. If only old DOS operating systems could utilize 8 Gigs... I'd be finishing the desert-to-jungle scenario on a huge world in less than an hour!